Proposal to Create the Compound Foundation

Hi @twinker—responding on behalf of the CGWG:

The primary driver for this proposal is to ensure uninterrupted protection for the Compound ecosystem.

While the DeFiSafety document mentions a six-month renewal cycle to ensure oversight, this duration was not intended to be a hard-set restriction and is intended to fit the protocol needs at the time. There is already clear precedent for extending this authority beyond the initial timeframe. For instance, the last governance renewal set the expiry for September 2026, which established a 12-month protection window and was ratified by the DAO. Extending the ProposalGuardian to 2030 simply builds on this to ensure the protocol maintains a robust, uninterrupted fail-safe against malicious proposals without the risk of a security gap.

Furthermore, there is precedent for moving with immediacy on these proposals without an extensive deliberation period. See timing of forum comment and onchain vote.

There has been due care taken by the DAO and its service providers to ensure that the community multisig is effectively run and kept up to security standards, as per this thread. The duration of this new guardian role is once again temporary, albeit extended. Trusted entities like Certora, Chainsecurity, and prominent community members have been added to the multisig. These are groups directly working with the DAO and have aligned incentives and strong reputations for trustworthiness. It’s for this reason that the risks of a longer timeline are now reduced.

In order for the protocol to effectively point its focus towards delivering on growth and development objectives, the overhead of security must be properly adjusted. Therefore, this new proposal invites delegates to consider the vote within the broader circumstances of where Compound is in with its current evolution towards long-term stability.

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